UPDATE: FBI on NBA gambling arrests, 31 arrested including current players & coaches

“Insider Trading for the NBA”: Mob-Backed Gambling Schemes Net 34 Arrests, Including Chauncey Billups and Terry Rozier

In a “massive, nationwide takedown,” federal authorities have charged 34 individuals, including current NBA coach Chauncey Billups and current player Terry Rozier, in connection with two sprawling illegal gambling and sports rigging schemes linked to New York’s organized crime families.

FBI Director Kash Patel called the fraud “mind-boggling,” with investigators labeling the sports betting scheme the “insider trading saga for the NBA.” The coordinated operation, spanning 11 states, exposed how professional sports figures were used to hustle unwitting victims out of tens of millions of dollars, creating a financial pipeline for La Cosa Nostra (LCN).

Two Cases, One Criminal Pipeline

The defendants were charged across two separate but overlapping indictments, with former NBA player and coach Damon Jones implicated in both:

Case 1: Operation Nothing But Bet (NBA Sports Betting)

This conspiracy focused on exploiting confidential, non-public information about NBA athletes to manipulate prop bets (wagers on a player’s individual statistics, like points, rebounds, or assists).

The Scheme: NBA players and associates allegedly used inside information—such as a player’s plan to sit out or alter their performance—to bet on their “unders” (that they would score or assist less than expected).
The Rozier Example: While playing for the Charlotte Hornets, Terry Rozier allegedly tipped off co-conspirators that he planned to leave a March 2023 game early with a supposed injury. The group then placed over $200,000 in wagers on his under-statistics. Rozier exited after just nine minutes, and the bets paid out tens of thousands of dollars in profit.
The Network: The indictment states that defendants, including Rozier and former player Damon Jones (charged in both schemes), had access to private information from NBA players and coaches likely to affect outcomes. This information was provided in exchange for a flat fee or a share of the betting profits.

Case 2: Operation Zen Diagram / Royal Flush (Rigged Poker)

This scheme involved rigging high-stakes poker games across the country, cheating victims out of at least $7 million.

Mafia Backing: The operation was backed by members and associates of four of the five New York La Cosa Nostra families: the Bonanno, Gambino, Genovese, and Lucchese crime families.
Technological Fraud: The rigging was technologically sophisticated:

Custom shuffling machines that could read the order of cards.
Barcoded decks and hidden cameras built into tables and light fixtures.

The “Face Cards”: The organizers enlisted well-known public figures, including Portland Trail Blazers head coach Chauncey Billups, a Hall of Famer, and Damon Jones, to make the games appear legitimate and lure “unwitting victims.”
Mob Enforcement: When victims refused to pay, the defendants resorted to organized crime’s traditional methods: threats, intimidation, and violence.

Law Enforcement’s Response

FBI Assistant Director Christopher Reya stated the arrests represent a “massive, Nationwide takedown,” emphasizing that the operation utilized the notoriety of some and the wallets of many to fund the Italian crime families.

FBI’s Focus: The FBI stated it “will never take their eye off the ball” when it comes to Italian organized crime in the city, vowing to eradicate all unlawful revenue streams fueling organized criminal activity.
Inter-Agency Effort: Homeland Security Investigations (HSI), the NYPD, and the Waterfront Commission were all involved in the complex, multi-year investigation, which HSI dubbed “Operation Royal Flush.”
NBA Cooperation: The NBA has cooperated with the investigation, immediately placing both Billups and Rozier on leave, stating, “the integrity of our game remains our top priority.”

FBI Director Patel warned that the investigation is “only the tip of the iceberg” and very much ongoing, with the eventual aim of ensuring all members and associates of the Five Families face accountability.